In the current digital age, it’s imperative for every sector to manage customer expectations – more so with the banking and financial services industry.
With the traditional financial institutions – right from setting up an account to applying for a loan or transferring funds– customer experience can be gruesome. Fintech companies have taken it upon themselves to redefine consumer experience with the help of the latest technological innovations.
Let’s look into 7 cutting-edge technologies that are directly impacting the relationship between consumers and financial institutions:
1. Artificial Intelligence
Artificial intelligence (AI) and machine learning (ML) advances have made it possible to interact between humans and machines in two ways.
Humans can now communicate by voice with computers. Artificial intelligence (AI) through large-scale predictive analytics helps consumers have a more personalized experience. AI-driven predictive analytics designs customized financial packages for individual customers.
Fintech companies use AI to improve the speed of loan approvals, help with customer retention, and prevent financial fraud.
2. Digital-Only Banking
A profound example of fintech technology is digital-only banks. These banks not only cut down human resources and infrastructure costs; they also provide quick services. Many fintech apps offer digital-only banking to provide quick services, including instant personal loans, insurance, bill payments, fund transfer, and many more.
Traditional financial institutions will have to come to grips as more digital banks start to deliver better offers to customers. As a whole, it would provide customers with more options.
3. Chatbots and Virtual Assistants
Most consumers are not financially-savvy. Every now and then, they call customer support for guidance. And most of the time, they have a similar line of questions.
Fintech companies have tried to answer these common queries through chatbots and virtual assistants. This technology is quick and effectively delivers relevant content.
4. Augmented Reality
Fintech companies use augmented reality (AR) to enhance and enrich customer experience. Consumers can access AR technology on their mobile phones without expensive headsets, unlike VR technology.
AR combines digital and physical components to create interactive AR experiences in physical spaces. This makes consumers feel more connected to the financial institution.
5. Public Cloud
Fintech companies adopt the public cloud to deliver quick services to their customers. Public cloud streamlines the operations and helps to build customer-centric processes for a better customer experience.
6. Quantum Computing
Fintech institutions use quantum computing for their backend computations. The benefit of using quantum computing is that it increases the speed of any type of financial transaction.
Quantum computing is used for asset pricing, trading, risk analysis, and much more. As this technology advances, consumers will get to enjoy better financial products in the future.
7. Internet of things (IoT)
IoT is nothing but various devices connected to each other through the internet. As more and more devices connect to the internet, it opens up new opportunities for fintech companies. The fintech companies deploy IoT to offer faster and cheaper services to their consumers.
Today, smartphones and mobile devices are a gateway to the financial world. It has become more important than ever to give a good customer experience for sustainable growth.
Therefore, banks are slowly transitioning from their traditional structures and investing high in financial technology to provide an exceptional consumer experience. Customized interfaces, enhanced security, and a larger bouquet of financial services are some of the things banks are looking at to enhance customer stickiness.
About The Author
Lily Tran is a content writer, working for MoneyTap Vietnam. She is an expert in the field of Finance. Her passion for credit, debt, loan & investment drives her to help readers get an insight about everyday finance.